Buzz isn’t the only thing that blockchain is generating these days...
Over the last year, blockchain companies have raised over $10 billion in both regulated and unregulated offerings. They raised half of that in 2017. And unregulated initial coin offerings (ICOs) raised over $5 trillion during that time. And the blockchain companies raised the other half in first-quarter 2018.
And the only thing that those companies had to do was dangle the blockchain carrot for investors to come running.
With that said, many investors still can’t answer the big question: What is a blockchain?
And more importantly: Why is it capable of drumming up such an incredible amount of hype?
If those are the questions that you’re asking, you’ve come to the right place.
The Wealth Daily team put together this report to help you to learn what a blockchain is and how it'll change our rapidly developing digital currency economy.
Outside of that, we also appreciate that there's a profit angle. So, we analyzed a wide range of blockchain companies to bring you the names of three public blockchain companies.
These companies allow investors to interact with the blockchain market without venturing into the risky realm of ICOs.
Let’s get started...
What Is Blockchain?
The truth is, blockchain is a groundbreaking technology that will likely change how our world functions.
That’s why you might hear many people comparing these early days of blockchain development to the early days of the internet. Even Bill Gates is getting in on the blockchain revolution. The Bill & Melinda Gates Foundation has launched a new blockchain-powered mobile banking system.
But what is a blockchain?
To be honest, you don’t need to know all the technical details to make money. But understanding a summary could help you to understand the potential profits.
So, here's the gist...
A blockchain is a distributed and decentralized ledger of information. The information that exists on this ledger can be accessed by everyone involved. And this helps to keep events that happen in the blockchain public.
In our current financial world, blockchain tends to act like a technological middleman. And in doing so, it removes the regular middleman and reduces friction.
How Does This Change the World? It’s Actually Quite Simple
Through blockchain technologies, individuals can exchange funds, property, and even protect patents. And corporations can use blockchain technology to reduce friction and increase efficiency.
On top of all that, some blockchains — notably the Ethereum blockchain — have the power to operate smart contracts. Smart contracts are parameters in code that make actions happen without any intervention.
Here's a good example of how a blockchain can increase efficiency in the financial realm...
Say you want to have rent sent from your bank account to your landlord on the first of the month. You'd have to put those instructions into a smart contract with parameters. This would include whether or not you’re still living in the apartment. If all the conditions are met, the money will then move to your landlord's account without any additional action. This could decrease fees, prevent false charges, and save everyone time.
And that's the beauty of blockchain.
Of course, the example that I gave is fairly basic. Blockchain can also be used alongside dozens of other emerging technologies.
Picture armies of artificial intelligence (AI) robots that all learn from one interconnected database. That would be a blockchain. Imagine a more efficient supply chain system with alerts in real time. That would also be a blockchain.
The possibilities are endless. And that's enticing to corporations that are eager to save money.
Santander Bank estimates that by 2020, blockchains will save people $20 million a year.
So, how do you get your cut?
3 Companies Pioneering Blockchain
The first and most obvious way to profit from blockchain is to venture into the volatile, turbulent world of digital assets. But you could also make profits in the public blockchain space. This is where a handful of companies has already made significant progress in the development of blockchain tools.
Through the three companies listed below, you'll gain access to the blockchain market without touching a single digital asset...
Walmart (NYSE: WMT)
You probably don't think of the terms "innovative" and "high tech" when you think of Walmart. But you should. Over the past few years, the king of brick-and-mortar stores has felt an increase in pressure from e-commerce giants like Amazon. So, to stay in front of its competition, Walmart has turned to technology to improve its business model.
One such technology is blockchain.
Blockchain can be used to help Walmart in resolving some of its bigger efficiency issues, mainly shipping. Recently, Walmart stated that it's developing a “smart package." This is a package that's capable of being registered on a blockchain. This kind of system would allow the shipper, receiver, and handler access to information about a wide range of factors — like temperature, location, and conditions.
Outside of using blockchain for supply management, Walmart also recently filed a patent that centers on a potential use of blockchain technology. In this patent, Walmart talks about using technology tools to securely access restricted areas of their customers' homes with autonomous vehicles (AV). Such access would likely save time, money, and effort, and it would increase efficiency. In this patent, Walmart mentions that blockchain technology could serve as part of a solution for “authentication-based access and encryption.” And this would work to allow vehicles to slip through to selected areas.
In the future, Walmart's use of blockchain to improve its business model could help the company surge ahead to make itself a hybrid of brick and mortar and fast-paced...
International Business Machines Corporation (NYSE: IBM)
International Business Machines Corporation (IBM) is, without a doubt, a technology mega-giant. The multinational technology company has clawed its way to the top of Silicon Valley. And it's done it by providing dozens of business solutions. In fact, it's provided so many that a lot of investors are confused about how to define IBM.
One of the most recent expansions for IBM includes blockchain technology. The company emerged as an early pioneer of the tech when it launched its IBM Blockchain Platform.
IBM’s blockchain-for-business platform provides the complete blockchain-for-business experience. It grants enterprise customers the security of the IBM cloud, ease of use, and tools that slash activation times. This platform allows smaller enterprises to interact with blockchain technology. And it does this without them having to pay for the development of their own blockchains. It empowers small businesses to transform their biggest ideas into value-producing, multi-organizational systems.
IBM is in a unique position to also benefit from the blockchain revolution as a software provider. As a giant with a well-established reputation, IBM will likely become a go-to for any small company that seeks innovative blockchain solutions...
Hitachi, Ltd. (OTC: HTHIY)
Maybe better-known for its whooshing bullet trains than blockchain, Hitachi is well-positioned to profit heavily from the coming blockchain revolution.
The over-a-decade-old Japanese conglomerate currently offers a wide range of business segments. They include information and telecommunication systems, construction machinery and automotive systems, and also railways. With that said, from a value perspective, Hitachi is already a good buy. It entices value investors with a price-to-earnings (P/E) ratio of 13.33 while the industry standard is 17.55.
Recently, the company meandered into the blockchain space with the goal to use blockchain technology to improve many business enterprises.
The company will integrate blockchain technology into its popular point management and rewards platform, PointInfinity. PointInfinity has over 150 million users. It's already used by many merchants and service providers that operate membership loyalty programs. And after it completes proper testing, Hitachi may integrate the Mijin blockchain into its point management program. And that would mark one of the most successful implementations of blockchain technology in any sector.
Outside of this project, Hitachi is also working on the development of its own blockchain technology. To do so, the company has opened its own fintech-exclusive lab in California. Hitachi is one of 30 founding members of the open-source Linux foundation the Hyperledger project.
Well, there you have it. Those are only three of the hundreds of companies that are using blockchain to build better enterprise solutions, supply management, and customer relations. But through their unique business models, these companies are well-positioned to benefit from blockchain adoption and development.
For more blockchain developments, be sure to read our daily free e-letter, Wealth Daily.